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Turkey Business Confidence December 2020

Turkey: Business confidence picks up in December.

Business confidence rose to 106.8 in December from November’s 103.9. As such, the index moved further north of the 100-threshold.

The uptick came on the back of an improvement in firms’ assessments of the general business situation. In addition, sentiment regarding export orders in the next three months also picked up. Moreover, views regarding the amount of stocks of finished goods at present and expected output in the next three months also improved.

Turning to prices, producer price inflation expectations for the year ahead rose from 14.7% in November to 15.8% in December. This marked a 14-month high and likely reflected lingering currency weakness, despite the lira regaining some lost ground recently in the wake of monetary policy tightening.

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